What Kind of Business Ventures Should the European Union Funding Target in Central and Eastern Europe

Abstract

European Union financing through the different financing mechanisms and programs of the European Union can present a competitive advantage for business startups. More specifically, European Union financing can help bring to the world and the markets projects which would have not otherwise seen the light by simply relying on markets, due to unavailable or insufficient financing for incipient businesses. The area of Central and Eastern Europe by comparison to Western Europe can be generally seen as a more fertile ground for business start-ups because the markets are less crowded by experienced or technologically driven businesses. Legislation, traditions, ways of doing business are also different and heterogeneous. As such, the area can be seen from a macroeconomic point of view as strategically important for business start-ups in the European Union and the European Union can be a differentiating financing partner for the incipient businesses in the area. As such, a symbiosis between the two can be found if the European Union financing programs can either discover, triage and invest into businesses which are either socially beneficial or economically and financially profitable in the long term. This paper aims to explore what kinds of businesses European Union funding can target and arguments why these options are economically viable.

Keywords

• european union financing
• central and western europe business start-ups
• social profit